In order to manage the operation staff some of the elements and the questions for the assessment are mentioned thereunder:
- Evaluate varies nature of legal system.
- Give appropriate potential impact of law on all the business.
- Give and examine different formation of business organisations.
- Recommend varies legal solutions which helps in resolving disputes in KANZO.
Business law is understood as the law which governs the commercial sector of a nation. This law is important because it helps to take any of the organisational decision which assist to bring positive outcomes. The cases of business are dealt under the branch of civil law. This project will have the detail information about business law and how it needed to be governed. All of the advices in this particular project will be given to KANGO(K). They deals in the sector of delivering the meal services to home and they are involved in this sector since 2016. Some of the topic which will be covered in this respective project will be related to nature of legal system and and how does it impacts on any of the business organisation. There will also be the explanation on the topic of formation of different types of limited company and it discussion will last till delivering the appropriate solution to dispute.
Detail discussion on the nature of legal system.
In this respective question, the management system of K have realised that they must give some basic knowledge about the legal system of UK as that can be very effective for them to achieve the desire goals. The knowledge of legal system will help KANGO to take most of the business decision and that can be effective too.
The legal system of UK is very lengthy and every laws and regulation are well framed due to which it helps to take any of the business decision. The power to pass any of law has been given to the House of Parliament as they are the Sovereign body and due to no one has the rights to interrupt their proceeding. The main focus of UK parliament while commencing law is that every should be benefited from any of the particular law so that any kind of disputes cannot be raised in future (Cameron, 2017). The session of Parliament always starts by the speech which is being delivered by authorised member of House of Lords i.e., Queen. There are seven different steps which need to be considered while commencing law in UK and they are first reading, second reading, committee stage, report stage, third reading, House of Lords and obtaining Royal Assent. All of this steps must be considered to commence a better law within the organisation.
Although, various steps need to be followed while commencing any of the law but still it is said that government of UK doesn't relay on single method to commence law. There are other sources too which are being involved for taking any of the business decision so that unnecessary issues doesn't arise and every sections can be covered easily. Detail information about the other sources has been mentioned below:
- Act of Parliament: The main source of UK for any of the law is parliament and they do there working in effective manner and even the result of any of the business organisation shows that too. For the better outcome and laws, parliament do seeks the advices of general public (Allen, 2017).
- Common Law: The main motive of this law is to cover all of those law which has been not covered by any of the other sources of law and that is the reason that chances of errors in UK law is very low. The body who has been authorised to commence common law is Judges of different level of courts as per the demand and requirement of law.
- European Union law: This source of UK law has been very effective because most of the law do come from this source. This law mainly covers the area of criminal sector and even business organisation too. In UK, it is necessary to comply the laws and regulation of EU law.
- European Convention on Human Rights: It has been also the key factor for UK in introducing law. This source has the responsibility to commence the law which are interrelated to the rights of any of the legal person. There are various law and regulation which has been commenced by the ECHR for example: Equality Act, Equal distribution of Wages and many more (Tushnet, 2017).
If KANGO can be capable to give knowledge about all of this sources and ways, then it will be very beneficial for them because it will make their work easier and faster. The business like KANGO can be effected from this sources because it will not allow them to take any of the decision of own and even it tells that how organisation can take best decision for achieving its targets.
How business law impacts on any of the business organisations.
KANGO have appointed numbers of staffs but they have given the tag of self employed to them. Although, they have been given the tag of self employed but still they are required to wear uniform and inform the management if any one of them wants to take leave.
It is the theory which clearly distinguish that who will be counted as employee and who will not be included. Here, any of the person who has been hired for short period of time then they will not be counted as the employee of an organisation. If person is hired for more then the period of one year then they will be counted as the permanent employee of the organisation and they must get each and every rights of workers (Bayern, 2016).
Classification between employed and self employed
It is the situation where people is required to take their decision of own to earn profit
It is defined as the situation where people do work for other to earn certain amount of money.
Employment law doesn't apply in this situation.
Employment law do apply in it.
There income is shown under the head of B&P.
This is shown under the head of salary.
Case: Pimlico Plumber v Mr. Smith
It is one of the famous case where it was decided by the judges that Mr. Smith should be counted as the employee of Pimlico plumber because he was working since very long period of time and even rights of employee should also be given to him.
The case started when Mr. Smith filed a case against Pimlico Plumber who is one of the self employed. But, Mr. Smith was also working for him since very long period of time but he was unable to get any of the rights of employment law. Even income tax statement also shows that Pimlico Plumber is one of the self employed and because of that he is not interested to give any of the rights of employee's to Mr. Smith.
In this case, if KANGO worker will be counted as the employed of K's business then most of the work could have been managed in a systematic manner and even the output would have been outstanding (Swanson and Frederick, 2016). There would be compulsory obligation on the employee's that they must follow the instructions which are given by the head of department. Even KANGO will also required to give the every single rights which is mentioned under employment law.
Explain the formation process of different types of limited business organisations.
The accountant of K is advising them to incorporate any of the limited company as there are various rights and benefits are being provided to them. As company wants to focus more on limited company, there are several types of organisation which can be included. The detail method of formation of limited business organisation is explained below:
Sole Proprietorship: Smallest form of organisation is sole proprietorship where there is no involvement of other person and because of that it becomes easy for organisation to operate any of the business activity at smaller platform. To form any of the sole proprietorship only registration should be by the nation of person who will manage day to day activity.
Partnership: This types of organisation can be setup when couple of person comes together for the common motive. The most important thing under partnership is that daily basic activities are managed very easily. Whenever any of the business organisation wants to incorporate partnership firm they are required to form a partnership deed through which working roles and responsibility can be given to every individual (Hansmann and Kraakman, 2017). Once partnership deed is prepared it is necessary that partners must register the organisation under partnership act and in final stage they are required to submit all of the documents in Companies House.
Limited Liability Company: This types of organisation is are capable of performing their business activities are greater platform. Number of members are involved in it due to which it become easy to take any of the business decision. The formalities which are required to be complied in it are little bit length as compared to other form of business organisation. The best benefit of this form of organisation is that power of suing has been given to them. The legal method and process to incorporate limited liability has been explained below:
- Name is needed to be decided with the help of online registration portal of company.
- Address should be decided for operating business activities.
- Member list is needed who will manage all of the activities of a company.
- Once all of this activities are completed, it is necessary that Memorandum of Association and Article of Association should be drafted (Morley, 2016).
Corporation: this types of organisation are very helpful for operating any of the business activities on a bigger ground. The process of taking any of the business decision is very crucial in it because number of people comes together to perform business activities in it. This types of business has the concept that it will never end once it has been incorporated. The legal way to incorporate corporation is explained below:
- Name is mandatory and must be different.
- Address is also needed to be decided.
- First director and first shareholder has the huge role to plays.
- MOA and AOA is must (Tepe, 2016).
- SIC code has to be obtained.
After completing all this formalities, it is necessary that all that documents must be handed over to Companies House.
Among all of this companies, KANGO should try to incorporate Limited Liability company as it will help them to perform all of the business activities in systematic manner. In addition they will be capable to sue and be sued. Also, proper team will be there which will help to take any of the business decision.
Deliver the suitable way to resolve the area of dispute within the business organisations.
Case Scenario: There is the dispute between KANGO and its IT supplier and now they are willing to solve it through the process except then court proceeding
Alternative Dispute Resolution
Whenever there is a need of settling disputes between 2 or more then two parties alternative disputes resolution is used. This process does not involve any legal actions or legal binding all that matter of conflicts are solved in a private forum or are solved out of the portals of court. It is the process which comes up with a long lasting solutions of the problems, greater satisfaction, and improved relationship without consuming more money and time. These involves variety of processes to resolve disputes :
- Mediation: In this process of dispute resolution a neutral person is being hired who is not biased on behalf of both the parties known as mediator (Raz, 2017). Mediator is the person who communicate with both the parties and ask them to come on mutual agreement to solve the disputes.
- Conciliation: It is also among one of the method through which dispute is solved. The main motive of conciliator is to find the best possible way to solve it. Conciliator are appointed in it. It is said that party is required to reach near to the agreement. There is no much and more difference in both mediation and conciliation (What is conciliation, 2018).
- Arbitration: It is one the of the process of which is widely in used to resolve the dispute. It is said that this process has been very effective in present scenario because legal binding is there in it. The main thing that is needed to be focused in it is that number of appointed arbitration should be in odd numbers (Rohlin and Ross, 2016).
Among all this method, it will be beneficial for IT department and KANGO to adopt arbitration method for solving the range of dispute between them. It will also be beneficial for them because legal agreements will be prepared in which similar form of dispute doesn't arise again.
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It is understandable that business law has its own importance where it teaches that how any of the decision is required to be taken. The legal system of UK has its own rules and regulation and it must be followed else legal action can be taken very easily. Number or laws and act do commence every day and it is said that they all have different nature and way of impacting on business organisation. The process of formation of company should be followed in a systematic manner else it is not possible to operate any of the business activities.
- Allen, W. T., 2017. Our schizophrenic conception of the business corporation. In Corporate Governance. (pp. 79-99). Gower.
- Bayern, S., 2016. The Implications of Modern Business–Entity Law for the Regulation of Autonomous Systems. European Journal of Risk Regulation. 7(2). pp.297-309.
- Cameron, P., 2017. International energy investment law: the pursuit of stability. OUP Catalogue.
- Hansmann, H. and Kraakman, R., 2017. The end of history for corporate law. In Corporate Governance (pp. 49-78). Gower.
- Morley, J., 2016. The Common Law Corporation: The Power of the Trust in Anglo-American Business History. Colum. L. Rev. 116. p.2145.
- Raz, J., 2017. The rule of law and its virtue. In The Rule of Law and the Separation of Powers.(pp. 77-94). Routledge.
- Rohlin, S. M. and Ross, A., 2016. Does bankruptcy law affect business turnover? Evidence from new and existing business. Economic Inquiry. 54(1). pp.361-374.
- Swanson, D. L. and Frederick, W. C., 2016. Denial and leadership in business ethics education. Business ethics: New challenges for business schools and corporate leaders. pp.222-240.
- Tepe, M., 2016. In Public Servants We Trust?: A behavioural experiment on public service motivation and trust among students of public administration, business sciences and law. Public Management Review. 18(4). pp.508-538.
- Tushnet, M., 2017. Comparative constitutional law. In The Oxford handbook of comparative law.